We’ll wrap our series, the ABCs of Behavioural Biases, by repeating our initial premise: Your own behavioural biases are often the greatest threat to your financial well-being. We hope we’ve demonstrated the many ways this…
Behavioural biases
We’re coming in for a landing on our alphabetic run-down of behavioural biases. Today, we’ll present the final line-up: sunk cost fallacy and tracking error regret. Sunk Cost Fallacy What is it? Sunk cost fallacy…
So many financial behavioural biases, so little time! Today, let’s take a few minutes to cover our next batch of biases: overconfidence, pattern recognition and recency. Overconfidence What is it? No sooner do we recover…
There are so many investment-impacting behavioural biases, we could probably identify at least one for nearly every letter in the alphabet. Today, we’ll continue with the most significant ones by looking at: hindsight, loss aversion,…
Let’s continue our alphabetic tour of common behavioural biases that distract otherwise rational investors from making best choices about their wealth. Today, we’ll tackle: fear, framing, greed and herd mentality. Fear What is it? You…
Welcome back to our “ABCs of Behavioural Biases.” Today, we’ll get started by introducing you to four self-inflicted biases that knock a number of investors off-course: anchoring, blind spot, confirmation and familiarity bias. Anchoring Bias…